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Accessory Dwelling Unit Forum & Panel Discussion. Are ADU's For You?

By John DL Arendsen

Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

June 04, 2019 11:21 AM

Accessory Dwelling Unit Forum & Panel Discussion.

Are ADU's For You?

ONE OF THE BIGGEST AND MOST IMPORTANT EVENTS IN SDCIA HISTORY! More and more homeowners are finding creative ways to earn extra money using the space they already own. The opportunity to utilize extra space in your own yard may sound too good to be true but is possible with an Accessory Dwelling Unit (ADU). If you have thought about having a private place for visitors to stay or even generating extra income, then building an additional structure or converting a garage into living space may be ideal.

Get answers to all your questions or concerns about adding a backyard home to your property. Learn about all the new state laws that have been enacted designed to make it easier to add value to your property.

Already have an ADU on your property that’s not permitted or non conforming? Find out how you can make it a legal and conforming improvement.

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Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

With a sizable percentage of our population being more aged, and another percentage finding the high cost of housing pricing them out, ADUs are going to come up for discussion more often.

Jun 04, 2019 12:27 PM

John DL Arendsen

Leucadia, CA

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

CONGRATULATIONS John, on having this blog FEATURED in the Old Farts Club group!

Jun 04, 2019 12:28 PM

John DL Arendsen

Leucadia, CA

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

Very true Myrl Jeffcoat and thank you so much for featuring this post. Hope a lot of Californios get on board. Whether they own one or rent one it's all about housing right?

Jun 04, 2019 04:16 PM

Bill Roberts

Brooks and Dunphy Real Estate - Oceanside, CA

"Baby Boomer" Retirement Planner

Hi My friend John DL Arendsen I will see you there.

Bill Roberts

Jun 05, 2019 07:04 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

Sounds great Bill Roberts! Looking forward to it.

Jun 05, 2019 07:07 AM

Bill Roberts

Oceanside, CA

Bill Roberts

Brooks and Dunphy Real Estate - Oceanside, CA

"Baby Boomer" Retirement Planner

Hi John DL Arendsen It went well. Congratulations on a job well done.

There were a couple of points that I would have liked to be covered a little better:

1) Financing for factory-built housing on a lot with a stick-built house

2) The right of cities to exclude certain areas from allowing ADUs

On this second question I understand that this is contrary to the state law. We need better clarification.

Bill Roberts

Jun 14, 2019 06:55 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

Thanks Bill Roberts I would have liked hearing about financing offsite buildings as well. However truth be known it has always been and still is on a case by case basis depending on the lender. There are many lenders that will loan on a manufactured home nowadays. That's not really the issue. It really gets down to appraisal and comps. How the blend of a site built primary residence will play out with a manufactured ADU is an ongoing case by case issue as well. Hope this makes a little sense.

Jun 14, 2019 07:15 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

On your second question Bill Roberts Jurisdictions have no right not to recognize and implement the State Laws or adopt an ordinance that complies with it. It's just been taking time for them to wrap their arms around how to embrace and implement the new laws. Eventually every jurisdiction in the State be they counties and/or cities will have to comply or face legal consequences that will only cost them a lot of money and wasted time.

Jun 14, 2019 07:19 AM

Bill Roberts

Brooks and Dunphy Real Estate - Oceanside, CA

"Baby Boomer" Retirement Planner

Thanks John DL Arendsen for replying to my concerns.

When you say "case by case" you are talking about portfolio lenders, but when the homeowner goes to sell the property they are severely handicapped if they have a "mixed" property of manufactured snd conventional construction BECAUSE lenders that make loans which they intend to sell on the open market (i.e. Freddie, Fannie, FHA etc.) they CANNOT make the loan.

Bill Roberts

Jun 14, 2019 08:35 AM

Bill Roberts

Brooks and Dunphy Real Estate - Oceanside, CA

"Baby Boomer" Retirement Planner

And then there is the issue of Oceanside disallowing ADUs in the coastal strip between the 5 and the ocean. According to the law as expressed by the State Senator who wrote the law EVERY house lot is "eligible" if it is large enough (after normal set-backs).

So where does O'side get off saying NO you can't have an ADU in the coastal strip?

Bill Roberts

Jun 14, 2019 08:41 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

You're absolutely correct. It is an issue for the average homeowner. However, I'm focusing on sophisticated buy and hold investors who want to add value to their investment by adding additional revenue streams. But I still disclose the financing issue should they decide to flip it over time. For the F&F investor I would never recommend a HUD MH unless the primary residence was also a HUD MH. Hope this helps.

Jun 14, 2019 08:42 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

The California Coastal Commission supercedes even the State Law. There's a special process all coastal communities must go through with respect to adding ADU's onto properties within the CCC sphere of influence.

Jun 14, 2019 08:48 AM